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Stocks X and Y have the following probability distributions of expected future returns: Probability X Y 0.1 -10% -25% 0.3 6 0 0.3 13 24

Stocks X and Y have the following probability distributions of expected future returns:

Probability X Y
0.1 -10% -25%
0.3 6 0
0.3 13 24
0.2 21 29
0.1 37 47

a.) Calculate the expected rate of return, rY, for Stock Y (rX = 12.60%.) Round your answer to two decimal places.

b.) Calculate the standard deviation of expected returns, ?X, for Stock X (?Y = 19.83%.) Round your answer to two decimal places.

c.) Now calculate the coefficient of variation for Stock Y. Round your answer to two decimal places.

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